CG Technology Offers $2 Million to Nevada Gaming Commission

CG Technology has offered to pay $2 million to the Nevada Gaming Commission to settle major violations, which also are threatening the company’s gaming license.

This offer comes after the commission rejected the negotiated settlement of $250,000 CG Technology made with the Nevada Gaming Control Board which is governed by the NGC.

The settlement is prompted by several sports betting violations made by CG Technology, including accepting bets from outside the state, taking wagers after events had concluded, distribution of incorrect payouts to nearly 1,500 bettors and misconfiguring a satellite sports book station for the 2018 Super Bowl.

The new settlement offer will be reviewed Thursday at the commission’s regularly-scheduled meeting.

CGT’s proposal specifies that the $1.75 million fine will be paid immediately; a $250,000 contribution will be made to the Nevada Council on Problem Gaming within 60 days.

The company also proposes regular best practices training of executives and creation of the position “corporate social responsibility officer.”

This is not CGT’s first experience with sports betting violations or the fines that accompany them:

In 2014, they were fined $5.5 million after an 18-count Gaming Control Board complaint that said then-CEO Lee Amaitis should have known the company’s vice president Michael Colbert was accepting illegal bets and was acting as an agent in a country-wide illegal betting operation.

In 2016, CEO Amaitis was forced to resign and the company fined $1.5. million stemming from significant failures in its administration of sports betting in Nevada, such as not properly investigating or correcting systemic issues with is computerized bookmaking system which prompted incorrectly paid wagers dating back to 2011. That included in some instances of miscalculation, mostly underpayments totaling $700,000 on single and parlay wagers and the untimely notification of those errors to bettors.

In August, when unanimously rejecting the CGT’s initial settlement proposal, commissioners said pulling of the company’s license might be considered due to the fact the company was back before the board because of violations.

“For me, this isn’t a fine issue. It is a revocation issue,” Commission John Moran said. “I can’t think of a more egregious ongoing pattern of violations. If there was a hearing in the future, I would be leaning toward revocation, not a fine.’’

As sports betting is becoming legal in more states, due to a U.S. Supreme Court ruling in May, Tony Alamo, chairman of the state Gaming Commission, said the country is seeking guidance from Nevada.